MONTREAL, March 1, 2012 /CNW Telbec/ - Mitec Telecom Inc. ("Mitec") (TSX: MTM) today announced that it has closed the sale of certain assets, mainly representing Mitec's VSAT division to Alga Microwave Inc., a well-established, Quebec-based manufacturer of high-quality and cost-effective components and systems for satellite, radar, mobile and broadcasting communications.
The transaction is valued in total at approximately $2.8 million, including approximately $2.0 million in cash, with an additional $800,000 forthcoming in the future primarily relating to the sale of Mitec's machine shop facility located in Pointe Claire, Quebec.
Mitec had previously reported that it had received a letter of intent to acquire these same assets from a group of Mitec employees.
"We are pleased that this transaction has concluded. Mitec can now focus on other new initiatives including its previously announced transaction with Optiway Inc., a leader in Distributed Antenna System (DAS) technology that enables enhanced wireless usage within buildings and other enclosed structures", said Jeffrey Mandel, President and CEO of Mitec.
About Mitec Telecom Inc.
Mitec is a leading designer and provider of radio frequency (RF) products for the telecommunications and satellite communications industries, as well as a variety of other sectors. Mitec sells its products worldwide to network providers for incorporation into high-performing wireless networks used in voice and data/internet communications. Headquartered in Montreal, Canada, Mitec is listed on the Toronto Stock Exchange under the symbol MTM. On-line information about Mitec is available at www.mitectelecom.com.
Certain statements in this release, including statements regarding future results and performance, are forward-looking statements based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for Mitec's products, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors listed in Mitec's public filings with the appropriate securities regulatory authorities.
For further information:
Mitec Telecom Inc.
Mr. Jeffrey Mandel
President, Chief Executive Officer and Chairman of the Board of Directors
Tel.: (514) 694-9000